SGOV vs USFR
Both funds aim for very low interest-rate risk using US Treasuries, but they get there differently: SGOV holds bills that mature within weeks, USFR holds two-year notes whose interest resets weekly.
By the SGOVResource.com editorial team Last reviewed Data refreshed How we calculate Editorial policy
Short answer: SGOV owns Treasury bills maturing within about three months. USFR owns Treasury floating-rate notes (FRNs) with up to two years to maturity whose coupons reset weekly to the 13-week bill rate plus a small spread. Both pay monthly and both are generally state-tax-exempt. SGOV is cheaper (0.09% vs 0.15%) and simpler; USFR may earn a slightly higher gross rate thanks to the FRN spread.
SGOV vs USFR side by side
| SGOV iShares 0-3 Month Treasury Bond ETF | USFR WisdomTree Floating Rate Treasury Fund | |
|---|---|---|
| Type | Exchange-traded fund | Exchange-traded fund |
| Provider | iShares (BlackRock) | WisdomTree |
| What it holds | US Treasury bills | US Treasury floating-rate notes (FRNs) |
| Maturity / rate reset | 0–3 months (ICE 0-3 Month US Treasury Securities Index (USD)); weighted avg. 0.12 yrs | Up to ~2 years to maturity, but coupons reset weekly to the 13-week T-bill rate |
| Expense ratio | 0.09% (issuer, auto-updated) | 0.15% (secondary source — verify) |
| Current yield | 3.76% 30-day SEC yield (Oct 22, 2026) | See issuer page (we don’t show peer yields without a licensed live source) |
| Income paid | Monthly | Monthly |
| Price behavior | Trades on an exchange near $100; rises slowly through the month, drops on each ex-date. | Interest-rate sensitivity is low because coupons reset weekly, but FRN spreads can move the price slightly. |
| State income tax | 95.14% of 2025 income came from US government obligations (iShares); generally state-exempt in most states. | Treasury FRN interest is generally exempt from state income tax; check WisdomTree’s annual tax information. |
| Protection | Not FDIC insured. Holdings backed by the full faith and credit of the US government; shares can lose value. | Not FDIC insured. Underlying Treasuries are backed by the US government; fund shares can lose value. |
SGOV figures: iShares, retrieved Oct 24, 2026. USFR figures: WisdomTree, checked Oct 24, 2026. Verify current figures with each provider before investing.
How floating-rate Treasuries work
The Treasury sells two-year floating-rate notes whose interest rate equals the most recent 13-week bill auction rate plus a fixed spread set at issue. Because the rate updates every week, the note’s price stays close to par when rates move. That gives USFR income that follows T-bill rates, much like SGOV, but through a different instrument.
Practical differences
- Rate lag: both adjust within days to weeks. SGOV turns over its whole portfolio within about three months; USFR’s coupons reset weekly.
- Spread risk: USFR’s prices can move slightly if demand for FRNs changes. SGOV’s bills are held to maturity within weeks, so this effect is minimal.
- Cost: SGOV’s expense ratio is lower; check USFR’s current fee on WisdomTree’s site.
Frequently asked questions
Does USFR have more interest-rate risk than SGOV?
Which yields more, SGOV or USFR?
What is the iShares equivalent of USFR?
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Educational information only. SGOVResource.com is independent and not affiliated with BlackRock or iShares. Nothing here is a recommendation to buy or sell any security or individualized tax advice. Estimates depend on the assumptions shown and actual results will differ. Read the fund’s prospectus before investing. Disclaimer.